Arkansas general liability insurance is frequently the first type of coverage purchased by small businesses in Arkansas. It’s required by many commercial landlords and clients as a condition of doing business with you.

A liability policy can help protect your business if someone other than an employee claims that you caused bodily injury or property damage. It can help pay to settle the claim or, if you’re sued, assist with legal defense fees and related damages.

Here’s an example of how Arkansas general liability insurance can help a small business:

A homeowner says that an appliance store employee in Little Rock incorrectly installed a washing machine, causing water damage to a hardwood floor. General liability insurance could help the business owner reimburse the client for the cost to replace the ruined flooring.

Owners of construction and cleaning companies might want to add an optional general liability upgrade called tools and equipment insurance. This kind of coverage is designed to protect business gear that is stolen, lost or damaged outside of wear and tear.

If your business employs three or more people, you’ll probably be required to carry Arkansas workers’ compensation coverage.²  If an employee gets hurt on the job, this type of insurance can help cover medical costs, physical therapy and a portion of lost wages while they recover.

For instance, a worker at a Fort Smith construction company is hurt by a falling object at a job site, needs an ambulance and stays in the hospital overnight. Workers’ comp coverage could help pay for the employee’s medical expenses and help cover lost wages while they’re unable to work.

Companies that own vehicles need to have commercial auto coverage in their Arkansas insurance packages. That’s because personal auto insurance won’t cover accident damages that happen while driving for business purposes.

Here’s how commercial auto insurance can help small businesses by assisting with towing, collision damage and medical costs:

An employee of a Bentonville-based plumbing company wrecks on the highway during a snowstorm and severely damages a van. Commercial auto insurance could help pay to repair or replace the vehicle and for medical attention if the plumber is hurt.

Hired and non-owned auto insurance is a type of coverage that helps pay for accident damages in vehicles that are not titled to your business. Companies that ask employees to drive their own cars for business or rent vehicles will want this optional add-on to commercial auto coverage.

Many Arkansas businesses purchase commercial property insurance to protect their business property, inventory and physical premises. This type of coverage can help pay for damages after a covered event, such as water, fire or wind damage.

For example, a sprinkler malfunction at a Hot Springs womens’ boutique damages the clothing for sale and ruins store fixtures. Commercial property coverage could help pay to replace the inventory and the damaged fixtures.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Many carriers don’t cover flood and hurricane damage.

Professional liability coverage, which is also called E&O or errors and omissions insurance, can help your business if you’re accused of professional negligence. It can help pay legal defense fees or settlements after claims of work mistakes, missed deadlines or incomplete work.

For instance, a real estate agent in Fayetteville accidentally sends prospective buyers to the wrong address for an open house, and the seller later files a lawsuit for professional negligence. Professional liability insurance could help the agent’s company cover legal costs and pay for damages.